Question: Dora Company declared and distributed a 15% stock dividend on 14,000 shares of issued and outstanding $5 par value common stock. The market price per

Dora Company declared and distributed a 15% stock dividend on 14,000 shares of issued and outstanding $5 par value common stock. The market price per share was $16 on the declaration date and was $15 on the distribution date. Which of the following correctly describes the accounting for the declaration and distribution of the stock dividend? Common stock increased $33,600. Retained earnings decreased $33,600. Retained earnings decreased $31,500. Capital in excess of par increased $21,000.

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